Red Cover has plan to move forward

Picture agency Red Cover claims to have gained the backing of the majority of its contributors to move forward with the business following the issuing of a Company Voluntary Arrangement.

Press Gazette revealed last month that south-London-based Red Cover owed nearly £500,000 to creditors and had told its freelance photographers and writers it would not be able to pay them for up to two years.

Now a formal meeting has been held with a representative group of contributors and creditors, administered by Fisher Partners, Chartered Accountants. A plan to take the company forward under the CVA was approved.

A CVA enables a financially troubled company to reach a binding agreement with its creditors about payment of its debts.

Mark Bezodis, managing director of Red Cover, said: ‘We now have the backing of our contributors to go forward with the business and make the company grow. Obviously they will benefit because they’ll get their money back”.

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